CONFLICT OF INTEREST

Section 112.313(7)(a), F. S. 1975, prohibits a public employee from being employed by or having a contractual relationship with a business entity which is subject to the regulation of his agency. However, this does not prohibit the executive director of a state regulatory commission from owning, or owning shares of stock in, a business entity regulated by that commission. Neither is the Code of Ethics violated where such executive director's spouse owns the business entity. However, the code would prohibit such employee from being employed by, loaning money to, or having any other contractual relationship with the business entity regulated by his agency.

QUESTIONS:

1. Would a prohibited conflict of interest exist were I, the Director of the Florida Barbers' Sanitary Commission, to own a barbershop?

2. Would a prohibited conflict of interest exist were I, the Director of the Florida Barbers' Sanitary Commission, to own shares of stock in a corporation which owns a barbershop?

3. Would a prohibited conflict of interest exist were my spouse to own a barbershop?

Question 1 is answered in the negative.

In your letter of inquiry and in a telephone conversation with our staff you have stated that you are the Director of the Florida Barbers' Sanitary Commission and that you are interested in owning a barbershop. You have stated that you would not be involved in the management of the shop; nor would you work in it. The seven members of the commission, which was created by s. 476.17, F. S. 1975, are appointed by the Governor. Under Ch. 476, F. S., the commission has the power to conduct examinations; to issue certificates of registration to practice as registered barber teachers, barbers and apprentices; to license barbering schools; to register barbershops; to conduct investigations; and to hold public hearings regarding the suspension or revocation of a certificate.

The Code of Ethics for Public Officers and Employees provides in relevant part:

CONFLICTING EMPLOYMENT OR CONTRACTUAL RELATIONSHIP. -- No public officer or employee of an agency shall have or hold any employment or contractual relationship with any business entity or any agency which is subject to the regulation of, or is doing business with, an agency of which he is an officer or employee . . . ; nor shall an officer or employee of an agency have or hold any employment or contractual relationship that will create a continuing or frequently recurring conflict between his private interests and the performance of his public duties or that would impede the full and faithful discharge of his public duties. [Section 112.313(7)(a), F. S. 1975.]

This provision prohibits a public employee from being employed by or having a contractual relationship with a business entity which is subject to the regulation of his agency. The Florida Barbers' Sanitary Commission is your agency, s. 112.312(2), F. S. 1975, and every barbershop in this state constitutes a business entity which is subject to the regulation of the commission under Ch. 476. Section 112.312(3), F. S. 1975. However, we do not deem the mere ownership of a business entity to constitute having an employment or contractual relationship with that business entity.

Accordingly, we find that the Code of Ethics for Public Officers and Employees does not prohibit you, the Director of the Florida Barbers' Sanitary Commission, from owning a barbershop.

Question 2 is answered in the negative.

We do not find that the mere ownership of shares of stock in a corporation constitutes having an employment or contractual relationship with that corporation. However, the Code of Ethics would prohibit you from being employed by or loaning money to or having any other contractual relationship with a corporation which owns a barbershop.

Question 3 is answered in the negative also.

In a telephone conversation you informed our staff that your spouse is not employed by, nor does she have any other relationship with, the Florida Barbers' Sanitary Commission. As she is not a public officer or employee, no provision of the Code of Ethics would prohibit her from owning a barbershop. Again, however, were you to be employed by or to have a contractual relationship with a barbershop owned by your spouse, a prohibited conflict of interest would be created under the Code of Ethics.